Curious Question #2

[Black Bart]

Does anybody happen to know if you can legally file a paper return before January 1st?

I don't do it. I don't know anybody that does do it. Still, several times over the years, a taxpayer has come in during December with the one item needed to file and wants to send the stuff in before the end of the year. I say they can't -- they say "Why not?" And I don't really know.

I realize that IRS may have a policy of just holding and ignoring early-filed returns until a certain date (maybe the EF filing date), but it looks like there would be some kind of rule rather than just a processing policy.

It's kind of a quirky question and I do like everybody else (ignore it) and just tell 'em we have to wait for the year to end. But I've alway been curious and while all the preparers I've ever asked say "No," nobody yet has ever known for sure and/or provided a cite, reference, rule, reg, etc. So...I just wonder. Is it legal? Is it a rule? Does anybody really know?

[Snaggletooth]

Filing without Documents

Dangerous to file without documents -- that part is a no-brainer. But as to whether a citation exists as to filing prior to year-end? I don't think so.

I'm assuming that it is even possible to know what your numbers are going to be prior to December 31. And that the question is "Can we do it" instead of "Is it smart to do it."

I think we actually could. Keep in mind the IRS is under no compunction to process the return, and also if there are any relevant issues the IRS saves the postmark.

Clearly this would violate all manner of e-filing prohibitions for lack of documentation, but Bart did specify a paper return.

[erchess]

When I started in this business

I was told that it was a violation of the rules to file before 1 January because you had no idea whether the return was complete until after 12/31. I was also told that it was against the rules to distribute an information document such as a W-2 or 1099 before 1 Jan and illegal to file with those missing until 2/15. I never got a cite on that but I was given to understand that we were talking about what the law would allow and not merely what that employer had for its own policies.

I would dearly love to hear from someone who has a cite that is on point.

[DonPriebe]

... I was also told that it was against the rules to distribute an information document such as a W-2 or 1099 before 1 Jan ... I would dearly love to hear from someone who has a cite that is on point.

The instructions for the W2 and 1099 series may be of some help. They specify the latest required mailing date, but say little of the earliest allowed date. They have several examples of documents mailed "early", such as a W2 to an employee who is terminated before the end of the year, or a 1099-DIV attached to the last dividend check for the year. They caution you to use the correct form for the year in question, so this would establish some sort of limitation on how early you could mail them out.

[DonPriebe]

And the other one ...

... I was told that it was... illegal to file with those [W2, 1099] missing until 2/15. ... I would dearly love to hear from someone who has a cite that is on point.

From the instructions for Form 4852 (Substitute W2 / 1099-R)

You should always attempt to get Form W-2 or Form 1099-R from your employer or payer before contacting the IRS or filing Form 4852. After February 14, you may call the IRS at 1-800-829-1040 if you still have not received Form W-2 or Form 1099-R. Generally, do not file Form 4852 before April 15.

[tpert]

I would also be interested in hearing from someone who has a citation.

A taxpayer receiving only Social Security will know by the December payment precisely how much they will receive from that source. If it is only that and they are eligible for the Recovery Rebate Credit, why not file if they have no other income?

Of course, there are still possibilities of winning MegaMillions, but we could just tell them to buy those tickets for us until January.

[ChEAr$]

Not a problem

Does anybody happen to know if you can legally file a paper return before January 1st?

I don't do it. I don't know anybody that does do it. Still, several times over the years, a taxpayer has come in during December with the one item needed to file and wants to send the stuff in before the end of the year. I say they can't -- they say "Why not?" And I don't really know.

I realize that IRS may have a policy of just holding and ignoring early-filed returns until a certain date (maybe the EF filing date), but it looks like there would be some kind of rule rather than just a processing policy.

It's kind of a quirky question and I do like everybody else (ignore it) and just tell 'em we have to wait for the year to end. But I've alway been curious and while all the preparers I've ever asked say "No," nobody yet has ever known for sure and/or provided a cite, reference, rule, reg, etc. So...I just wonder. Is it legal? Is it a rule? Does anybody really know?

Years ago some employees got their W2s from a local employer after last bi weekly pay sometimes as early as Dec 20th. With only one job, not other income atall, I could
prepare their returns, federal, GA and AL, for mailing before Dec 31st. And back then,
the service center at Memphis geared up to start processing January 2nd. These days,
however, I hear that they don't even start processing paper returns before the efile date.

Another for instance more current would be military retirees who can download their
W2's about the middle of December. Given no other income and maybe just social security, it's easy to prepare a paper federal return for these, since no Alabama return need even be filed. Sure, he can go ahead and mail it in on December 29th.
And no, receipt of a SSA 1099 isn't needed since I would have last year's tax data on which to compute this year's actual SS based on that excellent TaxBook's COLA amounts!

Heck, if I weren't married, if I knew of no more client checks to be received after December 20th, and knowing I wouldn't be buying any last minute supplies from Office Depot (for the tax deduction!) I could finish up my own 1120S AND my paper 1040 by December 25th.

[Black Bart]

Okay, thanks guys.

I agree that, as a practical matter, it's no problem. Certainly all the items mentioned (W-2 distributed early for termination/ unavailability of forms/ substitute W-2s/ December mailing and no IRS kickback/ / advance knowledge of SSA-1099 total/ IRS not processing the return until a certain date/ anecdotal instructions not to file/ etc.) are relative and have a bearing (I've made them myself and heard others do the same).

Still, the primary question -- Is there a regulation? -- remains, and the answer also remains elusive. I'm kinda beginning to think that, like for many tax situations, there is no hard and fast regulation. If there was, surely someone would have heard of it.


Clarification:

Dangerous to file without documents -- that part is a no-brainer. But as to whether a citation exists as to filing prior to year-end? I don't think so.

Snag -- I did not mean someone filing without documents -- I meant someone filing WITH documents (for instance, a single W-2 which is all his income for the year).

P.S. Look there, tpert -- I did some of that misspeakin' again without hardly even tryin'.